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NYSE reversed its decision to delist three major Chinese telecom companies in a move that's leaving some in the industry confused about what to expect next

Jan 6, 2021, 20:58 IST
Business Insider

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It's been quite a few days over at the Big Board (aka the New York Stock Exchange). On December 31, the exchange announced it intended to delist three major Chinese telecom companies - China Telecom, China Mobile, and China Unicom Hong Kong.

The announcement was a result of an executive order signed by President Donald Trump back in November requiring US investors to exit positions in Chinese companies that could be considered a threat to US national security.

Fast forward to Monday night and NYSE has essentially asked for a mulligan, calling off the delisting of the three companies. Details around how the reversal came about are sparse, with NYSE citing "further consultation with relevant regulatory authorities" in its announcement of the u-turn.

The move was made in part due to uncertainty around guidance from the US Department of Treasury over whether the executive order applies to the three companies, a source familiar with the situation told Insider.

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While the three companies enjoyed a nice pop in trading on Tuesday, they aren't out of the woods just yet. Should further guidance be given, there is a chance they could still be delisted, the source added.

On Tuesday, Bloomberg reported NYSE might still revert to its original plan to delist the companies following Treasury Secretary Steven Mnuchin reaching out directly to NYSE president Stacey Cunningham.

Meanwhile, the industry has been left scratching its head. A source at one firm that deals in American depositary receipts (ADRs) - the securities that allow US investors to trade in foreign companies - told Insider it's just as confused about what the future holds.

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Like the newsletter? Hate the newsletter? Feel free to drop me a line at ddefrancesco@businessinsider.com or on Twitter @DanDeFrancesco.

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Click here to read the entire story.

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